Recent changes to the Charities Act 2005 create statutory audit and review requirements for medium and large Registered Charities from 1 April 2015.  

Who will be affected?

If a charity’s total operating expenditure for each of the previous two accounting periods was:

• over $500,000 (medium) –  financial statements must be either audited or reviewed by a qualified auditor; or
  
• over $1 million (large) – financial statements must be audited by a qualified auditor.
  

Registered Charities with total operating expenditure of less than $500,000 are not required by law to have an audit or review. However, they may be required by their rules (e.g. trust deed, constitution, or charter) or as a condition of receiving a grant to have their financial statements audited or reviewed.

For more information on these changes please visit the Charities Services website here. This information was sourced directly from the Charities Services website.